GST is till date the biggest tax reform known that brought a uniform taxation system with many positive implications for the industries and exchange. Ever since GST regulations came in the scene, many businesses, manufacturers, and traders are in confusion regarding the calculations of new tax. They are facing several transitional issues in acknowledging such a modified and encompassing tax system even though it is far compared to the earlier fragmented dicey tax pc. However, ERP is giving them with the facility to comply with GST and embrace the changes totally. ERP of renowned platforms like Oracle, SAP, Odoo is helping companies to administer and adopt GST system, including taxes computation, configuration, liability accounting, master data amendments, reporting, technique was known forth.
Read on below to know how ERP systems roll out a complete solution for businesses and services firms to comply with GST rules and undergo tax calculations.
Chart of Accounts
Businesses earlier used have got a separate accounting code for computing VAT (Value Added Taxes) and ST (Services tax) in all goods and services transactions respectively. But, now those codes get combined with GST their ERP’s tax module. Post new regulations, the tax module of ERP carries forward the closing balance of the tax credit from current to brand new account codes.
ERP’s tax module assistance firms to calculate their tax returns on the sales and purchases data. After that it audits the amount before filing the GST returns. This saves up enormous time for the company’s accountants and assists them immensely once the daily transactions of goods or services are outstanding.
Error-free Taxation assessments filing
Besides supporting all regarding GST transactions, ERP’s tax engine help in easy identification and correction of all errors for the painless filing of tax returns. Further, it helps companies in exporting of tax returns statement to MS Excel system to upload or later give their Chartered Accountant, or tax practitioner.
Data Archiving & Protection
Businesses can save, archive and safekeep their tax data for any number of years at one place in an organised way. So, they can later jump on any time if required. Being able to view from a cloud source point, tax accountants can work real-time without having to use any manual data.
ERP provides the facility to master all the owner of GST regulations in an individual GST component. It enables adidas and puma or taxpayers to take into accout GST while issuing invoices for transactions. It configures the format for GST compliant invoices as per the business, auto-calculates the GST returns from every sale or purchase invoice and reconciles them.
All said and done, getting an ERP system GST ready is challenging job for the companies. Their existing system needs major revamping so they must know which for the modules will affect and which will correlate to new tax rules.
While smooth transitioning using a GST Registration Online in India compliant ERP in order to be a costly affair, thinking about SMEs, several ERP companies are launching reasonably priced GST-enabled ERP software to help relieve their associated with GST return filing. With it, rather than filing all the returns manually, they need to have to just invest all sales and purchase invoices details and the GST returns gets computed automatically.